Waterson was born in Hull, East Riding of Yorkshire, England. After being orphaned at an early age, he was brought up there, with his sisters Norma and Lal, by their maternal grandmother, Eliza Ward, who ran a second-hand shop during the Second World War, and who was of Irish Gypsy descent.[3][4] He is best known as a member of The Watersons, with his sisters Lal Waterson and Norma Waterson and originally with their cousin John Harrison and later with his brother-in-law Martin Carthy.[5] In the 1968–1972 interval between the two incarnations of The Watersons, he and his sister Lal recorded the album Bright Phoebus.[6] He and Lal were also part of the original Albion Country Band on the album No Roses with Shirley Collins.
He also released a solo album, simply called Mike Waterson, in 1977. "Tamlyn" from the album is track eight on the first CD of the Topic Records 70 year anniversary boxed set Three Score and Ten.
He had three daughters, one son, and five grandchildren. His daughter Rachel sang with the Watersons group in the late 80s, and his wife and two daughters sang with others of the family in the concert The Waterson Family: A Mighty River of Song
^SOFI (22 June 2011). "Mike Waterson RIP". Properganda online magazine obituary. Archived from the original on 13 September 2011. Retrieved 25 February 2015.